Reference no: EM132749493
Question: At December 13, 2021 the equity investments of Wang Inc. that were accounted for using The FVOCI model with recycling were as follows:
Investment Cost and Carrying Value Fair Value
Ahn Inc. $175,200 $150,000
Burnham Corp 121,500 140,600
Chi Ltd 73,000 75,500
Total 369,700 366,100
Wang sold its investment in Ahn for $153,300 on January 20. 2022. No other investments were acquired or sold during 2022; however, a dividend of $1,300 was received from Burnham Corp. in June. At December 31, 2022 the fair values of Burnham and Chi Shares were $153,750 and $72,600, respectively.
Required: a) Prepare the entry to adjust the portfolio of investments to fair value at December 31, 2021.
b) Prepare the presentation of all investment related accounts on the statement of financial position at December 31, 2021
c) Indicate the amounts to be reported on the statement of comprehensive income for the year ended December 31, 2021, and where each would be reported.
d) Prepare the journal entries for the 2022 sale of the investment in Ahn Inc. and the dividend received from Burnham Inc.
e) Prepare the journal entry required at December 31, 2022 to adjust to fair value.
|
What is the company profit for the year
: In 2019, ABC Company had $700,000 of revenue and $320,000 of operating expense. The company has a 20% Income tax rate. What is the company's profit for.
|
|
What gain or loss should o report on the retirement of bonds
: On 12-31-19, O issued $5,000,000 of its 4%, 5-year callable term bonds dated 12-31-19. The bonds pay interest every June 30 and December 31.
|
|
What is the process of producing reports
: What is the process of producing reports and confirming that system's bank account details reconcile with bank statement called? The response must be typed.
|
|
Describing the pattern of interest over the lease
: Rhone-Metro Industries manufactures equipment that is sold or leased. On December 31, 2021, Rhone-Metro leased equipment to Western Soya Co. for a noncancelable
|
|
Prepare the entry to adjust the portfolio of investments
: At December 13, 2021 the equity investments of Wang Inc. that were accounted for using The FVOCI model with recycling were as follows.
|
|
Calculate the net cost of ricos merchandise purchases
: RiCo uses the perpetual method for inventory and records purchases at gross. In 20X4, it has total merchandise purchases of $324,000. It returns $19,000.
|
|
Describe elements and purpose of each financial statement
: Explain the impact of accounting transactions in financial statements. Describe the elements and purpose of each financial statement.
|
|
What are the standard audit completion procedures
: What are the standard audit completion procedures? What is a provision? What is a contingent liability? A contingent asset? Enumerate the procedures to test.
|
|
Calculate the amount of depreciation expense
: A factory machine was purchased for $20,000 on March 1, 2021. It was estimated that it would have a $4,000 residual value at the end of its 5-year useful life.
|